Issues rejected

The IFRS Interpretations Committee received a request to clarify the accounting for contribution-based promises under IAS 19 Employee Benefits. Contribution-based promises are a post-employment benefit promise by which the amount of benefits to be received by the employee depends on the contributions plus a promised return.

The Interpretations Committee has previously considered this issue in 2002-2006. In 2004 the Interpretations Committee issued IFRIC Draft Interpretation D9 Employee Benefit Plans with a Promised Return on Contributions or Notional Contributions. In November 2006 it referred the issue to the IASB to be included in the IASB’s project on employee benefits.

The Interpretations Committee discussed this issue in several meetings. However, it was unable to reach a consensus in identifying a suitable scope for an amendment.

Consequently, the Interpretation Committee decided to remove this issue to its agenda in its May 2014 meeting. In the Interpretations Committee’s view, developing accounting requirements for these plans would be better addressed by a broader consideration of accounting for employee benefits.

The Interpretations Committee notes the importance of this issue because of the increasing use of these plans. The Interpretations Committee would welcome progress on the IASB’s research project on post-employment benefits.